Been selling 0DTE the past days in SPY. As the FED's rate cut is round the corner, am playing it safe of avoiding possible assignments by selling a further out strike. The IV has been very low for the past days with moving range of only $2-$3. Thus even with strike that's just $3 out, the premium became so diluted, unless manage to catch the day low and even with that, it needs to be early part of the day before the extrinsic value gets eroded as the day passes.
This CSP was opened shortly after market opens when the price trended near day's low. the strike was just about $1.5 away. In any case with the price still hovering near 660 after market, this option should expire worthless.
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- NatalieTommy·09-17Awesome strategy! Fingers crossed for that expiry! [Victory]1Report
- 闪电侠08·09-17IkkkLikeReport